Initial Coin Offerings Continue To Soar Despite Global Crackdowns
As monetary regulators around the world continue conducting crackdowns on illegal activities in a marketplace notorious for its criminal presence, the ICO marketplace continues soaring to new highs as investors show no sign of hesitance or heightened concerns regarding its stability.
According to reports, ICOs managed to raise a whopping $12 billion between January and May this year, as opposed to the much lower $5.5B raised throughout all of 2017. These earnings come despite the failure of over 1,000 cryptocurrencies.
Telegram and EOS are collectively responsible for investing more than five billion dollars into the market and many startups continue racking in more funds through coin sale services.
Initial offerings have come a long way since last year. Most of the assets raised this year were conducted through private offerings as opposed to public ones due to the unreliable nature of the market which often ends up costing investors massive losses.
As many initial coin offerings are joining in on efforts to abide by new laws and regulations being implemented, Bart Stephens of Blockchain Capital refers to this as ICO market normalization.
According to the NBER, the more validity and security an ICO presents towards clients and customers, the more successful of a business it will become. Increased profit and fruitful transactions have been successful in offering valid and secure transactions to digital asset providers, in addition to portraying heightened levels of quality.